Petroneft assessed reserves up 36.8%

Irish oil and gas exploration and production company Petroneft has today announced a 36.8% increase in assessed reserves.

The assessment was carried out by Independent Ryder Scott based on the results of exploration in the last 12 months.

The ‘p2 – proved and probable reserves’ now amount to 96.9 million barrels of oil at their Tomsk fields in Siberia in Russia.

The Ryder Scott reserve reports reinforce the exploration and acquisition successes of 2010 by recognising material new commercial reserves at Arbuzovskoye and Ledovoye.

In addition to the increase in reported reserves, the company also announced the agreement of a new loan facility which could provide it with US$75m (€54.2m).

Following the successful commencement of production from Licence 61 negotiations with Macquarie Bank (“Macquarie”) have successfully concluded resulting in agreement for a longer term, scalable borrowing base facility with increased flexibility at lower cost.

Dennis Francis, Chief Executive Officer of PetroNeft Resources plc, commented: “The Ryder Scott reserve reports reinforce the exploration and acquisition successes of 2010 by recognising material new commercial reserves at Arbuzovskoye and Ledovoye.

“We are very pleased to add quality reserves with demonstrated flow rates which will form an important element of our future development and production growth plans.

“Over the coming years, PetroNeft anticipates a steady pipeline of new discoveries and developments including that from the 2011 five well exploration programme.

“We are also delighted to extend our already strong relationship with Macquarie through the conclusion of PetroNeft’s first borrowing base facility.”